Mark Carney may have convinced Canada that he’s the steady hand they need, but across the Atlantic, those who worked with him are sounding the alarm. From his time as Governor of the Bank of England to his dramatic Brexit-era pronouncements, Carney left behind a trail of economic misfires and overblown predictions.

Video Transcript:

(00:00) Mark Carney may have convinced Canada that he’s the Steady Hand they need but across the Atlantic those who worked with him are sounding the alarm from his time as governor of the bank of England to his dramatic brexit era pronouncements Carney left behind a trail of economic misfires and overblown predictions now as he steps onto Canada’s political stage those who knew him best are warning you don’t know what you’ve signed up for enter sir Jacob Reese MOG never one to shy away from telling it like it is with his signature
(00:29) sharp wh and an unflinching grasp of economic reality ree smog has taken the gloves off exposing carne’s tenure for what it was a mess and he’s not alone British economists and journalists alike have called out carne’s so-called expertise branding him a man whose policies turn opportunity into crisis so why is Canada embracing him with open arms and what happens when reality catches up reog is pulling no punches and Canadians may want to listen before it’s too late welcome back to Street politics Canada sir Jacob ree MOG has
(00:58) never been one to mince words and his assessment of Mark carne’s tenure as governor of the bank of England is no exception with biting wit and an unyielding sense of economic realism Reese MOG has declared Carney as having been hopeless on monetary policy and who could disagree carne’s Reign was marked not by Prosperity but by stagnation sluggish growth and a penchant for Doom Laden predictions that never quite materialized if anything his track record resembles that of a man who mistook a fog horn for a crystal ball it
(01:26) is no surprise then that the British press has taken notice of carne’s latest Pol itical Endeavor in Canada where he has ascended to the office of prime minister the telegraph wasted no time in branding him with a reverse midest touch a fitting moniker for a man whose policies seem to turn economic gold into lead well I’m very sorry if that’s the case because Canada is a closer Ally of the United Kingdom than the United States is that you are a true friend and have been throughout your history really um my children two of my children were
(01:57) home from school on Monday and I thought I would do a bit of home teaching and I taught them about 1759 in general wolf and why Canada and the United Kingdom share a king and why we are such important and close allies I think this is in fundamental to my nation and to yours in our history and our connection I think the King has been magnificent he has shown um important support quite rightly for one of the countries of which he is King and these have been symbolic presentations and um an audience given to your new prime
(02:33) minister Mark Carney uh I don’t understand why K dama has been so quiet on this that of course we want to get on with the United States but Canada is a much closer friend than the United States to us we have a much greater shared history and indeed Canada began really because people didn’t want to be part of the United States we think all the people who leave the United States or what became the United States in 177 6 to become Canadians they left because they didn’t like the republicanism of the United States and I think we should
(03:07) be clear to Donald Trump that if he wants Canada to be the 51st state well he’d find that he had a king over the United States and he was a prime minister rather than the president and actually if Canadians had been voting last November Donald Trump might not have won so you should always be careful about what you ask for one might wonder how Canadians could be so enthralled by a man whose economic Management in Britain was at best mediocre and at worst catastrophic but perhaps it’s the same kind of charm that convinces
(03:37) investors to buy tulip bulbs at absurd prices momentary hysteria that leads to long-term regret Reese MOG has long been a vocal critic of carne’s economic stewardship particularly regarding his role in the brexit debate as the so-called high priest of project fear carne seemed more interested in political theatrics than in sound financial leadership his dire warnings about the UK’s departure from the European union now seemed laughable in hindsight as even his successor Andrew Bailey admitted that the most alarming
(04:08) predictions never materialized one might expect a central Banker to exercise more caution in making sweeping statements but Carney always had a flare for the dramatic perhaps mistaking his position for that of a stage actor rather than an economist um the NPC has a normal convention that it follows government policy not other things that may become policy later why was this not followed uh the convention is that for the purposes of our forecast uh we uh follow government policies so for a major government policy whether it’s
(04:44) the stance of fiscal policy uh or in this case uh in the case of uh government policy which is to remain a member of the European Union those are used to condition our forecast so it was followed in this case yes um in general election you do not give a view on opposition parties economic policies why not well in um in general election we um we observe the same convention uh which is to follow government policy um in general elections um we we have let me let me take a step back if I may provide the overall context which is
(05:23) um based on the experience of with inflation targeting um the adjustments to the remit the Stockton report which looked at how we forecast and how we could provide a richer sense of what our forecast is and how we could adjust policy for various shocks or uncertainties um we have a responsibility not just to provide and we have done this consistently whether not just to provide a base forecast but to identify the biggest risk to that those forecasts and give a sense of the Dynamics around those risks and how it
(06:00) may affect how they if they those risks manifest may affect monetary policy it helps understand the reaction function of the MPC it makes monetary policy more effective so there are a few examples of that labor Supply shock we looked at that uh in early 2015 we looked at uh wrists around China late in 2015 and in this case a discret issue which is membership or not of so I’m I’m coming to the answer to your question u a discreet issue is which is membership or not of the European Union uh which has the potential to change the trade-off
(06:35) and we can come to how that might be in a general election uh as you well know uh parties have a myriad of policies uh there are a wide range of possible outcomes the timing of those policies coming into uh effect uh can vary substantially um and so there is not a discreet option uh a risk positive or negative um that would be taken into account carne’s tendency to prioritize fear-mongering over facts extends Beyond brexit his warnings about climate change and now about Donald Trump follow the same tired Playbook the conservative UK
(07:14) magazine The Spectator astutely observed that carne’s toolkit relies heavily on fear a tactic that while politically expedient does little to instill confidence in economic management if Carney had spent half as much time focusing on economic fundamentals as he did issuing doomsday prophecies Britain might have fared better under his tenure instead we got the financial equivalent of a weather forecast that constantly predicts hurricanes but delivers drizzle I think it is extraordinary that Mark conney has become the prime minister of
(07:44) Canada he did a terrible job in Britain of the governorship of the bank of England he created a lot of the problems that blew up on my watch and that I got blamed for were actually created by him he backed labor in the election and Rachel Reeves’s policies which are leading the country uh to bankruptcy so why on Earth the Liberal Party of Canada is selected this man I have no idea and I think it is illegitimate that this guy has never been elected as a member of parliament in Canada I’m I’m you know I’m utterly puzzled and you know the
(08:22) Canadians you know I’m I’m not going to tell the Canadians how to vote obviously I want the conservatives uh to be elected to be elected in Canada but I think it’s it’s Justin Trudeau has pursued a lot of the same policies that Europe has been pursuing and America has raced ahead of us back at the turn of the Millennium the average Brit was catching up with the average American in terms of income bad wow we are now $34,000 a year behind we are poorer than Mississippi which is the poorest American state and the same is true the
(09:01) same is true of France and Germany and to some extent of Canada because they pursued all of these woke policies high taxes High spending not using their natural resources and Justin trude was the architect of that and of course Mark Carney has been the advocate of these policies so I don’t know what is going on in Canada but in the same way as I think people in Britain need to wake up to what the real threat to our country is I think they need to wake up in Canada um just wanted to get your thoughts on Mark Carney and your
(09:37) relationship with him uh while you were prime minister of the United Kingdom and any advice you have to Canadians who think he might make a good prime minister well Mark Carney was governor of the bank of England and under his tenure too much money was printed which did damage to the British economy and put our economy off track he at the last election in for Rachel Reeves Economic Policy she’s now become Chancellor it’s been a disaster for Britain uh the country is heading for bankruptsy so I would strongly recommend not backing
(10:10) Mark Carney or his policies on Net Zero which have been disastrous for Britain would be disastrous for Canada do you trust his judgment overall outside of ideological considerations well I believe that he made major mistakes in the management of the bank of England he has pushed Net Zero which has been a disaster not just for the UK but for many countries across the world thanks for your time prime minister apprciate now as Canada’s leader Carney appears poised to bring the same brand of economic mismanagement across the Atlantic the
(10:42) guardian has already attempted to paint him as a boring guy with experience in financial crises one might argue that the experience comes from creating them rather than solving them his supporters would have us believe that his tenure at the bank of England was a master class in crisis management but if avoiding a triple dip recession is the best achievement on one’s CV perhaps the bar has been set a little too low um is that really true that if you get a change of government you get a change in policy and you get a change in Market sentiment
(11:11) around it that if we had gone a year ago to the labor party’s economic policy that would have been a clear discreet event a change of government a new Chancellor at the ex cheer uh with a clearly identified set of economic policies the precise the precise Constitution of a new government the in the last election could have been uh another coalition government could have been a different coalition government uh the timing of certain policies coming in um is an is an open question I mean you’re this is your field you know that actual
(11:46) policies don’t um uh don’t always unfold uh in lock step with a Manifesto and so it’s h it’s too complex a um uh an alternative scenario to take into account meanwhile the new Statesman while trying to offer some praise has openly doubted whether Carney is the right man to take on Trump the publication rightly pointed out that untangling Canada from US economic influence would require radical change something Carney a quintessential technocrat is unlikely to pursue indeed his track records suggests he is more
(12:19) comfortable working within existing power structures than challenging them if Canada is looking for a bold leader they may have chosen the wrong man Carney seems more interested in being a steady hand on a sinking ship than in charting a new course yet for all carne’s faults he remains a darling of the liberal Elite the independent lamented that his greatest British Legacy was his failure to stop brexit a statement that perhaps inadvertently highlights his inability to turn predictions into realities it is quite
(12:45) something to be remembered not for one’s accomplishments but for one’s failures yet Carney seems to wear this distinction like a badge of honor perhaps Canada should take note after all a man who couldn’t steer Britain through brexit is now being entrusted with leading Canada through the challenges ahead in the end Carney is not a Visionary leader but a cautious bureaucrat who thrives on crisis rather than Prosperity his economic philosophy is one of managed decline rather than Dynamic growth making him an ill- fit
(13:12) for a nation in need of genuine reform if Canada hopes to thrive it will need more than a technocrat with a polished resume it will need a leader willing to challenge the status quo rather than uphold it for those watching from Britain there is a certain Grim satisfaction in seeing carne’s next ACT unfold after all he has now found himself in a position where his policies will face the ultimate test will his reverse Midas Touch continue to hold or will Canada defy the odds one thing is certain if carne’s track record is
(13:40) anything to go by Canadians May soon find themselves longing for the days of Trudeau again well that’s all for now do you think Canada is making a huge mistake by trusting Mark Carney or will he finally prove his critics wrong let us know what you think in the comments below and if you haven’t please subscribe and leave a like for this video your support helps us continue our work you can also follow us on Twitter where we post stuff we can’t post on YouTube you can find the link in the description below thanks again for your
(14:06) support and I will see you in the next one